- AUD will receive additional upside momentum if inflation eases less quickly than expected – Commerzbank
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AUD will receive additional upside momentum if inflation eases less quickly than expected – Commerzbank
Australia Consumer Price Index (CPI) report will be decisive for the next Reserve Bank of Australia (RBA) decision and, therefore, for the Aussie, economists at Commerzbank report.
Inflation data will be decisive for the RBA
The Australian inflation data for Q3, due for publication on Wednesday, are likely to be decisive for the RBA when it comes to deciding whether it will hike the key rate again next week (or at the latest in December).
If inflation eases less quickly than expected, rate hike expectations for next week (or December) and thus AUD will receive additional upside momentum. However, the RBA will then have to deliver either with actions or at least with clear words, signalling a rate hike for December. Otherwise, AUD would suffer all the more.
See – Australia CPI Preview: Forecasts from seven major banks, rebound in inflation to continue
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